Help to Save: How the 50% HMRC Bonus Works and Who Can Get It (2026)

Help to Save is one of the best deals in British personal finance, and one of the least used: save up to £50 a month and the government adds 50p for every £1, up to £1,200 over four years. It's run by HMRC for people on Universal Credit who are in work, and since April 2025 almost any earnings count. This guide explains who qualifies in 2026, exactly how the two bonus payments are calculated and when they arrive, what withdrawals do to your bonus, how it interacts with Universal Credit, and what the scheme's move to a permanent footing from 2028 means.

Quick answer

Help to Save lets working people on Universal Credit save £50 a month or less for four years. HMRC pays a 50% bonus in two parts — after 2 years (half your highest balance) and after 4 years (half of how much you grew that highest balance). Save the full amount every month and you get £1,200 on top of your £2,400.

• Eligible if you get Universal Credit and had take-home pay of £1 or more in your last assessment period

• Bonuses go to your bank account within 21 days of the end of month 24 and month 48

• Bonuses don't reduce Universal Credit; savings up to £6,000 are ignored

• Now permanent — from April 2028 eligibility widens to UC claimants with the child or carer element

• Apply free on GOV.UK or in the HMRC app — never through a third party

What Help to Save is

Help to Save is a government-backed savings account designed to help people on low incomes build a cash buffer. It launched in September 2018. More than 656,000 accounts had been opened by the end of April 2026, with savers paying in over £676 million and more than £300 million paid out in bonuses, according to HMRC figures published in September 2026.

The deal is simple. You pay in between £1 and £50 in each calendar month — you don't have to pay every month — and the government rewards you with two tax-free bonuses. The account lasts four years, then closes. You keep all the money, but you can only ever have one Help to Save account in your life.

The return is far higher than any bank account. Save the maximum and you put in £2,400 and get £1,200 on top — a 50% return over four years. Even someone saving £10 a month gets bonus money that no high-street savings rate can match. HMRC's own figures show 94% of savers pay in the maximum £50 each month.

Who can open an account in 2026

You can open a Help to Save account if both of these apply:

• You're getting Universal Credit, and you — together with your partner, if it's a joint claim — had take-home pay of £1 or more in your last monthly assessment period. Take-home pay means pay after deductions such as tax and National Insurance. HMRC checks this against the earnings on your Universal Credit award, so if you're self-employed, run the eligibility check when you apply.
• You live in the UK. If you live overseas, you can only apply if you're a Crown servant or a member of the British armed forces, or the spouse or civil partner of one.

The earnings rule changed on 6 April 2025. Before then you needed a minimum level of earnings; now the scheme is open to every Universal Credit claimant who is working and earning at least £1. The government estimated that change made around 550,000 more people eligible.

If you're a couple on a joint Universal Credit claim, each of you can open your own account — you apply separately. That doubles the potential bonus for a household to £2,400.

What if I used to get Working Tax Credit?

Older guides list Working Tax Credit as a route in. Tax credits ended in April 2025, when remaining claimants moved to Universal Credit, so today Universal Credit is the only way to qualify. If you opened an account while on tax credits, it carries on as normal.

If you stop claiming Universal Credit

Once your account is open, you can keep using it even if you stop claiming benefits — for example, because your hours increase or you start a business that takes you off Universal Credit. Your bonuses still count. This is one reason to open an account as soon as you're eligible, even if money is tight: eligibility is checked when you apply, not for the whole four years.

Can you open a Help to Save account?

0/5

• You're getting Universal Credit
• You (and your partner, on a joint claim) had take-home pay of £1 or more in your last monthly assessment period
• You live in the UK (or are a Crown servant or armed forces member overseas, or their spouse or civil partner)
• You've never had a Help to Save account before
• You have a UK bank account for withdrawals and bonuses

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How the bonus works

This is where most people get confused, because the two bonuses are calculated differently.

First bonus (end of year 2). HMRC looks at the highest balance your account reached at any point in the first two years and pays you 50% of it. If you paid in £50 every month and never withdrew, your highest balance is £1,200, so the first bonus is £600.

Final bonus (end of year 4). HMRC compares the highest balance in years 3 and 4 with the highest balance in years 1 and 2, and pays 50% of the increase. If your highest balance doesn't go up, there's no final bonus. Keep paying £50 a month and your balance rises from £1,200 to £2,400 — an increase of £1,200, so the final bonus is another £600.

It's the highest balance that counts, not the balance on the last day. A withdrawal after you've hit your peak doesn't reduce the bonus for that period. GOV.UK's own example: save £25 a month for two years, giving a highest balance of £600 and a first bonus of £300. Save another £200 in years 3 and 4, lifting the highest balance to £800, and the final bonus is £100 — even if you later take some money out.

Help to Save bonuses at different saving levels (no withdrawals)

Saved each month	Highest balance yr 2	First bonus	Highest balance yr 4	Final bonus	Total bonus
£10	£240	£120	£480	£120	£240
£25	£600	£300	£1,200	£300	£600
£40	£960	£480	£1,920	£480	£960
£50	£1,200	£600	£2,400	£600	£1,200

£10

Highest balance yr 2

£240

First bonus

£120

Highest balance yr 4

£480

Final bonus

£120

Total bonus

£240

£25

Highest balance yr 2

£600

First bonus

£300

Highest balance yr 4

£1,200

Final bonus

£300

Total bonus

£600

£40

Highest balance yr 2

£960

First bonus

£480

Highest balance yr 4

£1,920

Final bonus

£480

Total bonus

£960

£50

Highest balance yr 2

£1,200

First bonus

£600

Highest balance yr 4

£2,400

Final bonus

£600

Total bonus

£1,200

Paying in

You can pay in by debit card, standing order or bank transfer, as many times as you like, up to £50 per calendar month. If you've saved £50 by 8 January, you can't pay in again until 1 February. Unused allowance doesn't roll over, so skipping a month means that month's £50 of saving room is gone for good. A standing order on payday is the simplest way to stay on track.

When bonus payments arrive

Bonus dates run from the month you opened the account, not the exact day. The first bonus period is the 24 months beginning with your opening month, and the maturity period is normally 48 months beginning with that month. After each period ends, NS&I — the government savings bank that runs the accounts — has 21 days to pay the bonus into the bank account you nominated.

Example — account opened in November 2026

Nov 2026

Account opened; first payment in

Nov 2026 – Oct 2028

First bonus period (24 months)

By about 21 Nov 2028

First bonus paid to your bank account (within 21 days)

Nov 2028 – Oct 2030

Years 3 and 4 — keep growing your highest balance

By about 21 Nov 2030

Final bonus paid; account closes

Because the bonus goes to your bank account rather than into Help to Save, make sure the account you nominated is still open. If you change banks, update your details through your Help to Save account before a bonus is due. If the account holder dies or becomes terminally ill, the maturity period can end early and any bonus earned so far is paid.

The press often reports Help to Save as "HMRC paying £1,200 bonuses" to Universal Credit claimants. There's no lump sum or date when everyone is paid: each saver's bonuses fall due on their own 24- and 48-month dates, and only if they've saved.

Worked example: what a withdrawal costs you

Sam opens an account and pays in £30 a month for two years. Highest balance at the end of year 2: £720. First bonus: £360, paid to Sam's bank account.

At the start of year 3, Sam's car fails its MOT and Sam withdraws £400, leaving £320. Sam then pays in £50 a month for the next 24 months, so the balance climbs to £320 + £1,200 = £1,520.

• Highest balance in years 3 and 4: £1,520.
• Highest balance in years 1 and 2: £720.
• Increase: £800. Final bonus: 50% × £800 = £400.

Total bonuses: £760. Without the withdrawal, the highest balance would have reached £1,920, an increase of £1,200, and the final bonus would have been £600 — so the withdrawal cost Sam £200 of bonus. It didn't cost the first bonus, which had already been earned. The lesson: if you must withdraw, the cost depends on whether you can rebuild beyond your earlier peak before the end of year 4.

Help to Save and your benefits

Universal Credit. Savings of £6,000 or less (yours and your partner's together, including your Help to Save balance) don't affect your Universal Credit at all. Savings above £6,000 reduce your award, and you generally can't get Universal Credit if you have more than £16,000. With a maximum balance of £2,400, Help to Save alone won't take most people over the threshold, but count it alongside other savings. GOV.UK confirms that Help to Save bonuses don't affect your Universal Credit payments.

Housing Benefit. The same £6,000 savings rule applies, and bonuses don't affect Housing Benefit payments.

Tax. GOV.UK describes both Help to Save bonuses as tax-free.

Has Help to Save been extended? The 2028 changes

Help to Save was originally meant to close to new savers in September 2023. It was extended to April 2025, then to April 2027 — which is why older news stories warn that the scheme is "ending". At Autumn Budget 2025, the government confirmed it will be made permanent.

The next change is due in April 2028. HMRC says eligibility will be extended to Universal Credit claimants who receive the child element or the carer element, removing the earnings test for people with caring responsibilities. Government announcements describe this as opening the scheme to all Universal Credit claimants and making about 1.5 million more households eligible. The detailed rules will be set out in regulations; we'll update this guide when they're published.

Help to Save by the numbers

656,700

Accounts opened

Sept 2018 to April 2026

£300m+

Bonuses paid out

HMRC, September 2026

94%

Save the £50 maximum

Of account holders

1.5m

More households eligible

Government estimate for 2028

Delivery is changing too. Today NS&I runs every account. The government has confirmed a multi-provider model, so banks, building societies and credit unions will be able to offer Help to Save directly to eligible customers. The core design — the £50 monthly limit, four-year term and 50% bonus — will stay standard across providers, and HMRC will still check eligibility using government data.

For now, nothing changes for current savers, and if you're eligible today there's no reason to wait for 2028: every month you delay is £50 of saving room you can't get back.

Is Help to Save worth it?

For almost everyone who qualifies, yes. A 50% bonus over four years works out at a far higher return than any savings account, and there's no risk to your money: the scheme is government-backed. To get £1,200 of interest on £2,400 of savings paid in gradually over four years, an ordinary account would need an interest rate many times higher than anything on offer from a bank.

The real limits are the small deposit cap and the four-year life. Help to Save works best as the first layer of an emergency fund, sitting alongside a separate easy-access account for anything above £50 a month. Because you can withdraw at any time, it can double as that emergency fund — the only cost of dipping in is a smaller final bonus, never a penalty on the money you've saved.

A couple on a joint Universal Credit claim can each open an account. If both save £50 a month for four years, the household puts in £4,800 and receives £2,400 in bonuses. If money is tight, it can be worth prioritising one account at the full £50 rather than two at £25, because both routes earn the same total bonus and one account is simpler to keep on track.

What happens when your account closes

Your account closes automatically 4 years after you opened it, when the final bonus is worked out. You keep all the money you saved, the final bonus goes to your nominated bank account, and you can't reopen the account or open a new one. Plan ahead for where the money goes next — an easy-access savings account or a cash ISA keeps the habit going. If your income has risen by then, consider keeping the same standing order running into your new savings account so the £50 a month keeps building.

How to apply

Opening a Help to Save account

1. 1

   Check you're eligible

   You need to be on Universal Credit with take-home pay of £1 or more in your last assessment period (you and your partner together).

2. 2

   Sign in on GOV.UK or the HMRC app

   Use your HMRC sign-in details. If you don't have any, you can create them when you sign in for the first time.

   Apply for Help to Save
3. 3

   Prove your identity

   You'll need your National Insurance number or postcode, plus two of: a UK passport, a UK photocard driving licence, tax credit claim details, Self Assessment details from the last 2 years, or information from your credit record.

4. 4

   Add your bank details

   Give the UK bank account where withdrawals and bonuses will be paid.

5. 5

   Set up your payments

   Pay in by debit card, standing order or bank transfer — up to £50 each calendar month.

   Tip: A standing order a day or two after your Universal Credit or wages arrive makes the habit automatic.

The HMRC app is a popular route: nearly 24,000 people opened an account through it in the year to September 2026. In the app you can see your balance, payments in and bonus dates. If you already use the HMRC personal tax account, the same sign-in details work.

If you can't apply online, call HMRC. Our HMRC contact numbers guide lists the helplines and the best times to call.

Common mistakes and scams

• Waiting until you can afford £50. Any amount counts. £5 a month still earns a bonus, and you can pay more in later months — up to £50 each month.
• Withdrawing just before a bonus date. Earned bonuses aren't clawed back, but a withdrawal in years 3 or 4 can cut the final bonus. Try to rebuild beyond your earlier peak.
• Closing the account early. You lose the next bonus and can never open another account.
• Letting the nominated bank account lapse. Bonuses are paid to your bank account; keep the details current.
• Falling for "claim your £1,200" messages. HMRC doesn't text or email links to claim Help to Save bonuses. Bonuses are paid automatically. Forward suspicious texts to 60599.
• Assuming you're not eligible because you're self-employed. If you claim Universal Credit and have earnings on your award, run the eligibility check — it takes a few minutes. If you're starting out, see our guide to how to start a business in the UK.

Official GOV.UK links

• Help to Save: how it worksOverview, limits and withdrawals
• Help to Save: what you'll getBonus calculation
• Help to Save: eligibilityUniversal Credit rules
• Help to Save: how to applyApply or sign in
• Help to Save: effect on benefitsUniversal Credit and Housing Benefit
• Help to Save bonus timing (HMRC manual)24 and 48 months; paid within 21 days

What to do next

If you're on Universal Credit and working, open your account this month — even a small first payment starts the clock. Set up a standing order you can sustain, note your 24- and 48-month dates, and keep your bank details up to date. Use the free budget planner to find a monthly amount that works, and check your personal tax account for any tax refund you could add to your savings.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Who is eligible for Help to Save in 2026?

You can open an account if you get Universal Credit and you (with your partner, on a joint claim) had take-home pay of £1 or more in your last monthly assessment period. You must live in the UK, unless you're a Crown servant or in the armed forces overseas, or their spouse or civil partner. Couples apply separately and can each have an account.

How much is the Help to Save bonus?

The government adds 50% of what you save, paid in two bonuses. The first, after 2 years, is half your highest balance. The second, after 4 years, is half of how much you grew that highest balance in years 3 and 4. Saving the full £50 a month earns the maximum £1,200: £600 at each point.

When are Help to Save bonuses paid?

The first bonus is worked out at the end of the 24 months beginning with the month you opened the account, and the final bonus at the end of 48 months. NS&I must pay each bonus within 21 days. The money goes into your nominated bank account, not into your Help to Save account.

Has Help to Save been extended?

Yes. It was due to end in 2023, then extended to April 2025 and April 2027. At Autumn Budget 2025 the government made it permanent. From April 2028, eligibility is due to widen to Universal Credit claimants who get the child or carer element even without earnings, and banks and credit unions will be able to offer accounts.

Can I withdraw money from Help to Save?

Yes, at any time, but only to your bank account. Bonuses you've already earned aren't taken back. But withdrawing lowers your balance, which makes it harder to grow your highest balance and can shrink or wipe out the final bonus. If you close the account early you lose the next bonus and can't open another account.

Does Help to Save affect my Universal Credit?

Your bonuses don't affect Universal Credit or Housing Benefit. Savings, including your Help to Save balance, are ignored if you and your partner have £6,000 or less in total. Above that, savings can reduce your award, and you can't usually get Universal Credit with more than £16,000.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Get help with savings if you're on a low income (Help to Save) — GOV.UK · accessed 7 October 2026
2. 2.Help to Save: what you'll get — GOV.UK · accessed 7 October 2026
3. 3.Help to Save: eligibility — GOV.UK · accessed 7 October 2026
4. 4.Help to Save: how it will affect your benefits — GOV.UK · accessed 7 October 2026
5. 5.Help to Save: how to apply — GOV.UK · accessed 7 October 2026
6. 6.HSTM04100 — Bonus payment timing — HMRC internal manual · accessed 7 October 2026
7. 7.HSTM04400 — Bonus: end of maturity period — HMRC internal manual · accessed 7 October 2026
8. 8.More than £300 million paid out through Help to Save with thousands more savers set to benefit — HMRC / HM Treasury · accessed 7 October 2026
9. 9.Tax-free savings newsletter 19 — November 2025 — HMRC · accessed 7 October 2026
10. 10.Amendment to the Universal Credit eligibility criteria for Help to Save accounts — HMRC · accessed 7 October 2026
11. 11.Universal Credit: eligibility — GOV.UK · accessed 7 October 2026